India readies SAF policy with 1% international-flight blending target for 2027
The proposed Sustainable Aviation Fuel policy will set rules on traceability, airport storage, compliance and carbon credits. Blending targets for international flights rise to 2% in 2028 and 5% in 2030, with the government aiming to contain fare impacts for airlines and passengers.
What happened
Government of India · India is finalising a Sustainable Aviation Fuel policy covering traceability, airport storage, compliance and carbon credits. The
Key facts
- 1% SAF blending for international flights by 2027
- 2% SAF blending by 2028
- 5% SAF blending by 2030
- 8 crore litres required for 1% international blending
- CORSIA mandatory phase begins January 1, 2027
Why this matters
Corporate-development teams should assess partnerships or acquisitions in SAF logistics, certification and airport-fueling infrastructure before compliance demand accelerates toward 2030.
What to watch
- Publication of the final SAF policy, including eligible feedstocks, penalties, credit rules and treatment of imported SAF.
- Confirmed domestic SAF production capacity and binding offtake agreements before the 2027 mandate.
- Airport-by-airport fuel storage, blending and book-and-claim implementation plans.
- Airline disclosures on incremental fuel cost per passenger and any fare-surcharge mechanism.
- Availability and pricing of used cooking oil, ethanol, agricultural residue and other approved feedstocks.
- Inter-ministerial decisions on tax incentives, viability-gap funding, carbon-credit eligibility and customs treatment.
- Assess exposure to international-air-travel demand among airport retailers, duty-free operators, travel platforms, luggage brands and premium discretionary merchants.
- Track whether airlines announce SAF-specific surcharges, revised international fare guidance or changes to route capacity.
- Evaluate opportunities for foodservice, grocery and quick-service restaurant operators to monetize used cooking oil through traceable SAF feedstock contracts.
- Monitor refiners, ethanol producers, waste-management firms and airport infrastructure suppliers for SAF-related capex, storage and certification partnerships.
- Prepare for airline and travel-retail sustainability claims to require more rigorous traceability and carbon-credit disclosures.